In total, the 60 companies paid no federal income tax on $79 billion in U.S. pretax income, according to the study. And instead of paying $16.4 billion in taxes at the 21 percent corporate rate, the companies received a corporate tax rebate of $4.3 billion.
Netflix, for instance, raked in $856 million in profit but paid no federal taxes because of tax credits, according to ITEP. IBM, meanwhile, earned $500 million but received a rebate worth $342 million, although it’s unclear specifically how the company did so. The company said it used “domestic incentives” to reduce its income tax by about $110 million in 2018.
According to the Joint Committee on Taxation, the tax law is set to save U.S. companies $1.4 trillion by 2027.